There are several benefits of an fit-out project, such as improved employee retention, attracting the best talent, the potential productivity boost and the enhanced employee well-being. But these alone may not be enough to convince the key decision makers - what you need is concrete facts, not speculation.
To aid those discussions, we've put together a list of ways to measure the potential ROI, taking both tangible and the more intangible benefits derived from an office fit-out to ensure that you can present a solid business case for your project.
Operational and Space Costs
We’re all operating in a new era of hybrid and flexible working. With the number of employers offering the ability to work remotely growing, this potentially means that your office space is likely being under-utilized, possibly because the needs of today’s way of working don’t work with the current setup. To generate the maximum return on investment from your office design start by considering how the space will need to be used, this then leads to calculating how much space you will need, this may result in a reduction and therefore cost. So, start by answering the following:
- What percentage of your workstations are currently not being utilized and how much space does this equate to? – These can be eliminated in any redesign.
- What is the average cost per workstation in terms of equipment, heating, lighting, cleaning and security?
- What does the space now need to cater for in terms of collaboration facilities, one to one private facilities, full team presentation areas, meeting spaces etc
- How much would your new office design save in terms of utilities, equipment and maintenance for each workstation?
This simple calculation can help establish just how much space you need and what valuable space, if any, which could be repurposed into an area which adds value to your organization. Alternatively, it could help you look at an office relocation, which is certainly an option if your lease is close to expiring, and you've outgrown or are under-utilizing your current space.
The positive impact of an office fit-out can also be measured if you consider the following:
Saving on recruitment costs:
An inspiring office design has such a huge impact when it comes to leaving the right impression on your desired candidates. Office design is a subjective area and any future projects should keep in mind the type of person you’re trying to attract to your business. According to Forbes, the cost of replacing an employee can range from 30%1 of their annual salary for an entry level employee and up to 400% of a high-level employee’s salary, therefore meaning a high churn rate will be detrimental to your business’ bottom line.
The millennial generation certainly has different tastes when compared to the Baby Boomer generation, with the younger demographic preferring shared spaces and social hubs rather than the Baby Boomers who much prefer the traditional office layout with rows of desks.
Fortunately investing in a good office redesign can reduce the churn2 as research shown by the Wellness Together project, carried out by Sapio Research found that 48% of employees consider their current office design to have a major impact on whether they stay working for a company.
Increase in productivity:
Office design can impact productivity both positively and negatively. The best office fit-out design will include a variety of spaces for different working styles, such as spaces for spontaneous collaboration but also spaces where employees can work in peace, allowing the individual to focus on their work away from the chatter of the office floor.
Improved Employee Wellbeing:
Prioritizing wellbeing as a key factor in any office design can lead to substantial benefits, especially when businesses incorporate design aspects that directly contribute to the health and wellbeing of their employees. An example of this being used widely in today’s office is Biophilic design. This design concept increases employees' connection to the natural environment through the use of characteristics from the natural world into the building. Modern offices which include plenty of greenery have reported a 30% decrease in sickness related absences as well as an increase in cognition and sleep quality.
Biophilic offices with better air quality, natural light and controlled temperature can positively impact employee wellbeing and subsequently may increase productivity. Whereas, poor air quality and a lack of thermal comfort can each reduce productivity by 10% meaning any office design project should pay careful attention to these important design elements.
Step towards more sustainable operation:
The use of sustainable building materials and technology such as LED lighting could be costly in the short term, however the future return on investment may be huge. According to Energy.gov having a sustainable office design can potentially reduce annual energy costs by 30% to 50%.
Cost savings aren’t the only reason companies are adopting the latest sustainable innovations as companies use sustainable office design to change their company and their culture, allowing you to attract and retain the right employees for your business.
At Officeinsight we ensure your office project can achieve the greatest return on your investment. Through our highly effective Define, Design and Deliver process that has been finely tuned over 20 years, we start by defining what it is you want to get out of the space - whether that be enhancing employee wellbeing, retention and reducing operational costs, and/or delivering the most inspirational workplaces - and incorporating this into the design and bringing this to life on-time and on-budget.
Check out the latest projects for inspiration: https://www.officeinsight.co.u...